A Philippine congressman has introduced a bill proposing the establishment of a state-managed Bitcoin (BTC) reserve of 10,000 units. This move aims to diversify the country's financial reserves.
Reserve Management and Protection
The bill mandates the Bangko Sentral ng Pilipinas (BSP) to acquire 2,000 BTC annually over five years, resulting in a total of 10,000 BTC to be held in cold storage. This strategy aims to protect the assets from theft or cyber threats. The BSP Governor is required to provide annual reports using a proof-of-reserve system to ensure transparency and accountability in asset management. The sale or collateralization of the reserve is prohibited for at least 20 years, and partial liquidation is allowed only under certain conditions.
Global Context and Local Motivations
The consideration of Bitcoin in government reserves is gaining momentum globally. Countries like El Salvador and Switzerland have already taken similar steps. The bill highlights the necessity for the Philippines to follow suit in light of the increasing popularity of digital assets and statements from the US Federal Reserve regarding Bitcoin as 'digital gold.'
Legislative and Political Implications
The bill is authored by Congressman Miguel Luis Villafuerte, emphasizing the need to modernize the Philippines’ sovereign reserve strategy. He argues that diversification beyond gold and US dollars is essential. If passed, this legislation would make the Philippines the first Asian nation with a government-backed Bitcoin reserve, potentially influencing regional policies on cryptocurrency.
The proposal to establish a Bitcoin reserve in the Philippines reflects a growing trend towards the use of digital assets in state finances and aims to secure the country’s financial stability.
